Activity based costing, time-driven activity based costing and lean accounting: differences among three accounting systems' approach to manufacturing

Choosing an appropriate accounting system for manufacturing has always been a challenge for managers. In this article we try to compare three accounting systems designed since 1980 to address problems of traditional accounting system. In the first place we are going to present a short overview on background and definition of three accounting systems: Activity Based costing, Time-Driven Activity Based Costing and Lean Accounting. Comparisons are made based on the three basic roles of information generated by accounting systems: financial reporting, decision making, and operational control and improvement. The analysis in this paper reveals how decisions are made over the value stream in the companies using Lean Accounting while decisions under the ABC Accounting system are taken at individual product level, and finally we will show how TD-ABC covers both product and process levels for decision making. In addition, this paper shows the importance of nonfinancial measures for operational control and improvement under the Lean Accounting and TD-ABC methods whereas ABC relies mostly on financial measures in this context.

Med Capital Partners: plan de negocio de una EAFI

Med Capital Partners (MCP en adelante) es un empresa de asesoramiento financiero independiente (EAFI) que ofrecerá servicios de asesoramiento personalizado tanto a clientes particulares como a empresas, complementando su oferta con otros servicios auxiliares, que le permitan brindar a sus clientes una solución integral. MCP ha sido fundada por tres socios con formación y experiencia específica en el ámbito objeto del negocio, pero multidisciplinar para ofrecer un amplio espectro de servicios de calidad tanto en la Región de Murcia, donde va a establecer su sede, como en el resto de territorio nacional. MCP se crea con la firme misión de ofrecer servicios de asesoramiento y consulta financieros para la gestión y planificación patrimonial de calidad, de forma independiente y transparente y con la motivación de ser el médico de cabecera financiero de familias, particulares y empresas de todos los ámbitos, basándonos en arraigados valores entre los que predominan la transparencia, la independencia y la discreción. Una vez analizados los factores externos y haber realizado los planes de marketing, operaciones y financiero, nos encontramos en disposición de determinar que: 1.Existe un gran número de clientes potenciales. 2.Los factores político, social y legal favorecen la creación de este tipo de empresas. 3.Hay pocos competidores establecidos hasta la fecha. 4.No necesita complicadas infraestructuras ni requiere elevados gastos de aprovisionamiento. 5.Desde el año 2, se obtienen resultados positivos. La propuesta de valor de MCP está focalizada en ofrecer un servicio de calidad al menor precio posible, fijando una política de tarifas inferior a la media nacional y a la de nuestros competidores más cercanos, así como un esquema de precios descendentes para aquellos clientes que depositen su confianza en nosotros y renueven su contrato de asesoramiento continuado o contraten un combo de servicios. En términos operativos, el establecimiento de MCP requiere relativamente poco capital inicial, permitiendo ofrecer los primeros dividendos a los socios en un corto espacio temporal y teniendo desde el primer momento, un sueldo que les permita dedicarse plenamente al funcionamiento de MCP. En definitiva, creemos que MCP puede dar respuesta a una gran oportunidad de negocio existente en un sector en alza y en un mercado de arranque en el que hay una gran riqueza y poca cultura de inversión asesorada. ---ABSTRACT---Med Capital Partners (MCP) is an invest services company, which is established according to an EAFI structure. MCP will offer a custom-made service not only to individual clients but also to enterprises, with a wide range of supplementary services, including industrial strategy projects and all kind of financial processes demanded. MCP has been founded by three partners with proved training and specific experience based on the financial field but multitask and different between them, in order to offer various quality services in Región de Murcia, where it is going to be based, and also all around Spain. MCP is built with the firm mission of offering assessment and financial consulting quality services, helping with the patrimonial management and planning, doing it in an independent and transparent way, and always driving by the motivation of being the family doctor of individual and enterprise of sectors. To make it possible, MCP has deep values as excellence, wisdom and discretion. Once we have analyzed external factors and having made marketing, operations and financial plans, we are ready to determinate: 1.There is a big amount of potential customers. 2.Political, social and legal factors favor the formation of this type of business. 3.There are not many established competitors until now. 4.MCP does not need complex infrastructures either raised initial investment. 5.From year 2 and on, MCP is profitable. The value proposition of MCP is to focus on developing quality services with affordable fees, fixing a price policy under any other Spanish EAFI. MCP wants to build processes according to reality, working with reachable expectations and on real times. MCP is committed to the creation of stable, sustainable and consistent structures to adapt themselves to the individual risk profile of the customers, taking care of all of them. MCP wants to build a close relationship with clients and has developed a descending fee policy. MCP establishment does not require high initial resources and it is profitable in a short time, allowing investors to get their first dividends. Summarizing, we can say MCP is the answer of a big business opportunity within a rising and wealth market that only need a little help to emerge.

Los instrumentos convertibles en acciones para la financiación empresarial en un entorno económico de restricción del crédito bancario

(SPA) Los bonos convertibles en acciones son instrumentos de financiación corporativa que en general comparten varias de las características de las emisiones de deuda senior corporativa, como el pago regular y fijado de cupones, vencimiento definido, momento en el que se repaga la totalidad del principal, y prelación en caso de default con respecto a otras obligaciones crediticias. En cambio, el repago del principal se ofrecerá bajo determinadas circunstancias en acciones de la compañía emisora en una proporción acordada previamente. Pero los instrumentos convertibles son instrumentos heterogéneos que suelen incorporar otras características particulares a cada caso, como son repagos anticipados bajo determinadas condiciones, reducción del ratio de conversión a determinados precios de la acción, pagos compensatorios o "make-whole" y otros. Los instrumentos convertibles son ejemplos de activos híbridos que comparten características de deuda y de capital y por tanto tienen impacto específico en la contabilidad de las empresas y en la posible dilución de sus accionistas. En España y otros países de la periferia de Europa, la emisión de bonos convertibles ha aumentado considerablemente desde el inicio de la crisis financiera, fundamentalmente debido a la restricción de otras formas de crédito empresarial, principalmente los créditos bancarios. En el presente artículo se explican algunas de las características comunes a los bonos convertibles emitidos recientemente por empresas españolas, se analizan las ventajas, y las razones para la emisión de estos activos, y se indican sus implicaciones contables. Los instrumentos convertibles pueden ser una alternativa estable a la deuda bancaria y a la renta fija tradicional en los mercados de capitales para la financiación de las compañías medianas, que tienen menos acceso a fuentes de financiación en situaciones de aversión riesgo por parte de los inversores y entidades financieras. (ENG)Convertible bonds share several characteristics with secure corporate debt, such as the regular coupon payments, fixed maturity and similar seniority in case of default. Nevertheless the investor of the convertible bond has the option of receiving the principal amount repayment at maturity in cash or receiving a previously agreed number of shares. But convertible securities can be complex financial instruments that possess exotic or specific features, such as soft calls, put options, cash options, cash top up features, or make whole amounts. Convertible securities are hybrid instruments that share characteristics of both debt and equity, and therefore suffer an specific accounting treatment under International Financial Reporting Standards, where the issuing company must separately identify the debt and equity components in its financial statements In peripheral European countries and in Spain in particular, convertible issuance has significantly increased since the start of the Global Financial Crisis, an increase mainly driven by the restriction of other forms of credit, namely banking loans. This article summarizes some of the common characteristics of convertible securities, analyzes its advantages for both issuers and investors, and introduces the accounting of convertible bonds. Convertible Bonds can become a viable and stable alternative to bank loans and to high yield or investment grade bonds for the funding of mid-sized corporates which normally have a more difficult access to credit in regional banking crisis or credit restrictive environments.

Reporting experiments to satisfy professionals information needs

Although the aim of empirical software engineering is to provide evidence for selecting the appropriate technology, it appears that there is a lack of recognition of this work in industry. Results from empirical research only rarely seem to find their way to company decision makers. If information relevant for software managers is provided in reports on experiments, such reports can be considered as a source of information for them when they are faced with making decisions about the selection of software engineering technologies. To bridge this communication gap between researchers and professionals, we propose characterizing the information needs of software managers in order to show empirical software engineering researchers which information is relevant for decision-making and thus enable them to make this information available. We empirically investigated decision makers? information needs to identify which information they need to judge the appropriateness and impact of a software technology. We empirically developed a model that characterizes these needs. To ensure that researchers provide relevant information when reporting results from experiments, we extended existing reporting guidelines accordingly.We performed an experiment to evaluate our model with regard to its effectiveness. Software managers who read an experiment report according to the proposed model judged the technology?s appropriateness significantly better than those reading a report about the same experiment that did not explicitly address their information needs. Our research shows that information regarding a technology, the context in which it is supposed to work, and most importantly, the impact of this technology on development costs and schedule as well as on product quality is crucial for decision makers.

Bankable procedures for the technical quality assurance of large scale PV plants

Strict technical quality assurance procedures are essential for PV plant bankability. When large-scale PV plants are concerned, this is typically accomplished in three consecutive phases: an energy yield forecast, that is performed at the beginning of the project and is typically accomplished by means of a simulation exercise performed with dedicated software; a reception test campaign, that is performed at the end of the commissioning and consists of a set of tests for determining the efficiency and the reliability of the PV plant devices; and a performance analysis of the first years of operation, that consists in comparing the real energy production with the one calculated from the recorded operating conditions and taking into account the maintenance records. In the last six years, IES-UPM has offered both indoor and on-site quality control campaigns for more than 60 PV plants, with an accumulated power of more than 300 MW, in close contact with Engineering, Procurement and Construction Contractors and financial entities. This paper presents the lessons learned from such experience.

Reporting experiments to satisfy professionals’information needs

Although the aim of empirical software engineering is to provide evidence for selecting the appropriate technology, it appears that there is a lack of recognition of this work in industry. Results from empirical research only rarely seem to find their way to company decision makers. If information relevant for software managers is provided in reports on experiments, such reports can be considered as a source of information for them when they are faced with making decisions about the selection of software engineering technologies. To bridge this communication gap between researchers and professionals, we propose characterizing the information needs of software managers in order to show empirical software engineering researchers which information is relevant for decision-making and thus enable them to make this information available. We empirically investigated decision makers? information needs to identify which information they need to judge the appropriateness and impact of a software technology. We empirically developed a model that characterizes these needs. To ensure that researchers provide relevant information when reporting results from experiments, we extended existing reporting guidelines accordingly. We performed an experiment to evaluate our model with regard to its effectiveness. Software managers who read an experiment report according to the proposed model judged the technology?s appropriateness significantly better than those reading a report about the same experiment that did not explicitly address their information needs. Our research shows that information regarding a technology, the context in which it is supposed to work, and most importantly, the impact of this technology on development costs and schedule as well as on product quality is crucial for decision makers.

Transit Use by Young People in Times of Financial Austerity: A Cause of Equity Concern?

This study investigates the effect of price and travel time fairness and spatial equity in transit provision on the perceived transit service quality, willingness to pay, and habitual frequency of use. Based on the theory of planned behavior, we developed a web-based questionnaire for revealed preferences data collection. The survey was administered among young people in Copenhagen and Lisbon to explore the transit perceptions and use under different economic and transit provision conditions. The survey yielded 499 questionnaires, analyzed by means of structural equation models. Results show that higher perceived fairness relates positively to higher perceived quality of transit service and higher perceived ease of paying for transit use. Higher perceived spatial equity in service provision is associated with higher perceived service quality. Higher perceived service quality relates to higher perceived ease of payment, which links to higher frequency of transit use.

Characterisation of the operation & maintenance phase in PV rural electrification programmes

Con 1.300 millones de personas en el mundo sin acceso a la electricidad (la mayoría en entornos rurales de países empobrecidos), la energía solar fotovoltaica constituye una solución viable técnica y económicamente para electrificar las zonas más remotas del planeta donde las redes eléctricas convencionales no llegan. Casi todos los países en el mundo han desarrollado algún tipo de programa de electrificación fotovoltaica rural durante los últimos 40 años, principalmente los países más pobres, donde a través de diferentes modelos de financiación, se han instalado millones de sistemas solares domiciliarios (pequeños sistemas fotovoltaicos para uso doméstico). Durante este largo período, se han ido superando muchas barreras, como la mejora de la calidad de los sistemas fotovoltaicos, la reducción de costes, la optimización del diseño y del dimensionado de los sistemas, la disponibilidad financiera para implantar programas de electrificación rural, etc. Gracias a esto, la electrificación rural descentralizada ha experimentado recientemente un salto de escala caracterizada por la implantación de grandes programas con miles de sistemas solares domiciliarios e integrando largos períodos de mantenimiento. Muchos de estos grandes programas se están llevando a cabo con limitado éxito, ya que generalmente parten de supuestos e hipótesis poco contrastadas con la realidad, comprometiendo así un retorno económico que permita el desarrollo de esta actividad a largo plazo. En este escenario surge un nuevo reto: el de cómo garantizar la sostenibilidad de los grandes programas de electrificación rural fotovoltaica. Se argumenta que la principal causa de esta falta de rentabilidad es el imprevisto alto coste de la fase de operación y mantenimiento. Cuestiones clave tales como la estructura de costes de operación y mantenimiento o la fiabilidad de los componentes del sistema fotovoltaico no están bien caracterizados hoy en día. Esta situación limita la capacidad de diseñar estructuras de mantenimiento capaces de asegurar la sostenibilidad y la rentabilidad del servicio de operación y mantenimiento en estos programas. Esta tesis doctoral tiene como objetivo responder a estas cuestiones. Se ha realizado varios estudios sobre la base de un gran programa de electrificación rural fotovoltaica real llevado a cabo en Marruecos con más de 13.000 sistemas solares domiciliarios instalados. Sobre la base de este programa se ha hecho una evaluación en profundidad de la fiabilidad de los sistemas solares a partir de los datos de mantenimiento recogidos durante 5 años con más de 80.000 inputs. Los resultados han permitido establecer las funciones de fiabilidad de los equipos tal y como se comportan en condiciones reales de operación, las tasas de fallos y los tiempos medios hasta el fallo para los principales componentes del sistema, siendo este el primer caso de divulgación de resultados de este tipo en el campo de la electrificación rural fotovoltaica. Los dos principales componentes del sistema solar domiciliario, la batería y el módulo fotovoltaico, han sido analizados en campo a través de una muestra de 41 sistemas trabajando en condiciones reales pertenecientes al programa solar marroquí. Por un lado se ha estudiado la degradación de la capacidad de las baterías y por otro la degradación de potencia de los módulos fotovoltaicos. En el caso de las baterías, los resultados nos han permitido caracterizar la curva de degradación en capacidad llegando a obtener una propuesta de nueva definición del umbral de vida útil de las baterías en electrificación rural. También sobre la base del programa solar de Marruecos se ha llevado a cabo un estudio de caracterización de los costes reales de operación y mantenimiento a partir de la base de datos de contabilidad del programa registrados durante 5 años. Los resultados del estudio han permitido definir cuáles son costes que más incidencia tienen en el coste global. Se han obtenido los costes unitarios por sistema instalado y se han calculado los montantes de las cuotas de mantenimiento de los usuarios para garantizar la rentabilidad de la operación y mantenimiento. Finalmente, se propone un modelo de optimización matemática para diseñar estructuras de mantenimiento basado en los resultados de los estudios anteriores. La herramienta, elaborada mediante programación lineal entera mixta, se ha aplicado al programa marroquí con el fin de validar el modelo propuesto. ABSTRACT With 1,300 million people worldwide deprived of access to electricity (mostly in rural environments), photovoltaic solar energy has proven to be a cost‐effective solution and the only hope for electrifying the most remote inhabitants of the planet, where conventional electric grids do not reach because they are unaffordable. Almost all countries in the world have had some kind of rural photovoltaic electrification programme during the past 40 years, mainly the poorer countries, where through different organizational models, millions of solar home systems (small photovoltaic systems for domestic use) have been installed. During this long period, many barriers have been overcome, such as quality enhancement, cost reduction, the optimization of designing and sizing, financial availability, etc. Thanks to this, decentralized rural electrification has recently experienced a change of scale characterized by new programmes with thousands of solar home systems and long maintenance periods. Many of these large programmes are being developed with limited success, as they have generally been based on assumptions that do not correspond to reality, compromising the economic return that allows long term activity. In this scenario a new challenge emerges, which approaches the sustainability of large programmes. It is argued that the main cause of unprofitability is the unexpected high cost of the operation and maintenance of the solar systems. In fact, the lack of a paradigm in decentralized rural services has led to many private companies to carry out decentralized electrification programmes blindly. Issues such as the operation and maintenance cost structure or the reliability of the solar home system components have still not been characterized. This situation does not allow optimized maintenance structure to be designed to assure the sustainability and profitability of the operation and maintenance service. This PhD thesis aims to respond to these needs. Several studies have been carried out based on a real and large photovoltaic rural electrification programme carried out in Morocco with more than 13,000 solar home systems. An in‐depth reliability assessment has been made from a 5‐year maintenance database with more than 80,000 maintenance inputs. The results have allowed us to establish the real reliability functions, the failure rate and the main time to failure of the main components of the system, reporting these findings for the first time in the field of rural electrification. Both in‐field experiments on the capacity degradation of batteries and power degradation of photovoltaic modules have been carried out. During the experiments both samples of batteries and modules were operating under real conditions integrated into the solar home systems of the Moroccan programme. In the case of the batteries, the results have enabled us to obtain a proposal of definition of death of batteries in rural electrification. A cost assessment of the Moroccan experience based on a 5‐year accounting database has been carried out to characterize the cost structure of the programme. The results have allowed the major costs of the photovoltaic electrification to be defined. The overall cost ratio per installed system has been calculated together with the necessary fees that users would have to pay to make the operation and maintenance affordable. Finally, a mathematical optimization model has been proposed to design maintenance structures based on the previous study results. The tool has been applied to the Moroccan programme with the aim of validating the model.

Smart and sustainable public transport systems through improving level and quality of service

Buses are considered a slow, low comfort and low reliability transport system, thus its negative and por image. In the framework of the 3iBS project (2012), several examples of innovative and/or effective solutions regarding the Level of Service (LoS) were analysed aiming to provide operators, practitioners and policy makers with a set of Good Practice Guidelines to strengthen the competitiveness of the bus in the urban environment. The identification of the key indicators regarding vehicles, infrastructure and operation was possible through the analysis of a set of case studies -among which Barcelona (Spain), Cagliari (Italy), London (United Kingdom), Paris and Nantes (France). A cross comparison between the case studies was carried out for contrasting the level of achievement of the different criteria considered. The information provided on Regulatory, Financial and Technical issues allows the identification of a number of specific factors influencing the implementation of a high quality transport scheme, and set the basis for the elaboration of a set of Guidelines for the implementation of an intelligent, innovative and integrated bus system, including the main barriers to be tackled.